There are various centers in the factory: namely: Assembly and Packaging for production functions; whereas service functions including Material store & Canteen. The following ESTIMATED costs info are related for pricing and cost estimation for negotiation for a prospective contract. Estimated O/H for apportionment between centers $ Factory depreciation and insurance 55,300 Utilities for machine power 36,000 Cost allocated to specific cost center: Assembly: $145,000 Packaging: $75,000 Material store: $68,000 Canteen: $35,000 Miscellaneous and concerned info: Cost Centre Total Assembly Packaging Materials Canteen Store Floor area (m2) 3,500 4,800 6,000 1,500 Number of employees 20 24 4 6 Machine hours 4,800 5,200 Share of Materials Store overheads 40% 60% Required: (1) Prepare a schedule showing the allocated and apportioned factory overhead costs for each cost center. (2) Re-apportion the service cost center overheads.
Accounting
There are various centers in the factory: namely: Assembly and Packaging for production functions; whereas service functions including Material store & Canteen.
The following ESTIMATED costs info are related for pricing and cost estimation for negotiation for a prospective contract.
Estimated O/H for apportionment between centers
$
Factory
Utilities for machine power 36,000
Cost allocated to specific cost center:
Assembly: $145,000
Packaging: $75,000
Material store: $68,000
Canteen: $35,000
Miscellaneous and concerned info:
Cost Centre Total
Assembly Packaging Materials Canteen
Store
Floor area (m2) 3,500 4,800 6,000 1,500
Number of employees 20 24 4 6
Machine hours 4,800 5,200
Share of
Materials Store
Required:
(1) Prepare a schedule showing the allocated and apportioned
(2) Re-apportion the service cost center overheads.
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